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 Sales revenues in the first nine months at 105.8 million euros (minus 44.0 million euros after 149.8 million euros last year)

 EBIT at positive 2.5 million euros (plus 5.4 million euros after minus 2.9 million euros in the previous year)

 Positive earnings before (EBT) at 7.6 million euros (plus 26.8 million euros after minus 19.2 million euros last year)

 Nine months income surplus at 7.9 million euros (plus 30.8 million euros after previous year deficit of 22.9 million euros)

 New strategic alignment: Balda Medical is back in the continued operations

 New target for 2009: Positive earnings before taxes

 Objective for 2010: significantly rising sales revenues

Bad Oeynhausen, 4 November 2009 - Balda AG, listed in the Prime Standard of the Frankfurt Stock Exchange, reached a surplus of 7.9 million euros in the first nine months of 2009 in the continued operations. In the same period of the previous year, the company registered a deficit of 22.9 million euros. This positive development of the profitability, which extends to all levels of the earnings, is due to targeted cost cutting programs of the new management and the profit contribution of TPK.

Sales revenues of the Balda Group declined in the first nine months of 2009. Reasons are the weaker sales volume of the Infocom market, the constantly growing pressure on prices as well as the partial relocation of projects into the facilities of the customer. In the Balda Group, the sales revenues in the continued operations amounted to 105.8 million euros at the end of the third quarter compared to 149.8 million euros in the previous period.

The operative earnings (EBIT) improved significantly in the third quarter and stood at 2.5 million euros (previous year: minus 2.9 million euros).

The company reached a positive EBT in the amount of 7.6 million euros compared to minus 19.2 million euros in the previous year.

New strategic alignment with Balda Medical

On the basis of a revised strategic alignment, Balda presents a new structure of the Group since the third quarter. Again, Balda Medical ranks among continued operations and is back as core business in the Balda Group. In the future, the company will represent the new German region. Balda Medical continues to grow profitably. In addition to the Group´s development centres for the manufacturing process in China and for electronic products in Malaysia it will strengthen the Group with its leading technology potential.

"The central measures for implementing the new strategy cannot be realised all at once. But we have started immediately. In China we have already stabilised our earnings situation with an improved cost management. In the region Malaysia we will launch innovative electronic products in 2010. A newly structured and globally aligned sales effort will accelerate revenue development in 2010. In this way we can extend our activities on to new markets in the USA and Europe and take Balda on a sustainable and profitable growth path", says Michael Sienkiewicz, CEO of Balda AG.

Prognosis adjusted upwards

In the light of the collateral of valuable assets in the Group, the Board of Directors is optimistic for the future financing structure. Contrary to predictions made concerning the current financial year, the Board of Directors expects a positive EBT, correcting the previously made forecast of a balanced result. "Against the background of the positive development with respect to new customer contacts, we are convinced to reach a fast turnaround in revenues in the business year 2010", comments Michael Sienkiewicz.

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Company profile

The Balda Group develops and produces complete plastic assemblies, electronic products and products for the medical industry. The customers of Balda are leaders in business from the mobile, entertainment and electronic communications as well as pharmaceutical and medical technology markets.

The Group has a strong global position with product sites in China, Malaysia, India and Germany. A subsidiary in the United States serves North American customers in product design and development. As part of a shareholding in a leading manufacturer of touch screens in China, Balda participates in the dynamic touch screen displays market.

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This corporate news announcement includes "forward-looking statements" which are based on the current expectations of the management of Balda. They are subject to risks and uncertainty because they relate to events and depend on circumstances that will occur in the future, such as, for example, developments in the mobile communications industry, changes in technology and the ability to timely and successfully develop new products and various other factors. Balda does not undertake any obligation to update publicly or revise forward-looking statements except to the extent legally required.

This corporate news announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or elsewhere. The shares in Balda AG (the "Shares") may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")) unless registered under the Securities Act or pursuant to an exemption from such registration. The Shares have not been and will not be registered under the Securities Act.